Now Reading: US loses 23,000 jobs as hiring slump deepens
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US loses 23,000 jobs as hiring slump deepens
US employers unexpectedly cut 23,000 jobs in July, far below the 95,000 gain economists had forecast. The Bureau of Labor Statistics also revised June's job gains down sharply to 20,000 from 57,000,…
The Story in Brief
US employers unexpectedly cut 23,000 jobs in July, far below the 95,000 gain economists had forecast. The Bureau of Labor Statistics also revised June's job gains down sharply to 20,000 from 57,000, and May's gains to 66,000 from 129,000. The unemployment rate dipped to 4.1% only because Americans left the labour market.
Healthcare added 22,600 jobs, while restaurants and bars lost 26,000 and local public schools cut 50,000 positions. Average hourly earnings rose just 0.1% in July, with annual pay growth slowing to 3.2%, the lowest in five years, while inflation remains at 3.5%. Business Today reports economists expect seasonal adjustments may have exaggerated some losses.
The Indian Opinion
Some commentators will call this a clear recession signal. Others will dismiss it as a seasonal data distortion. The truth is more nuanced: even excluding seasonal noise, private payrolls excluding healthcare added only 7,000 jobs. The key test is the next two months' reports. If wage growth stays below inflation, households will feel the real pinch, and the narrative will shift from 'soft landing' to something harsher.
Sources (2): timesofindia.indiatimes.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
